The current expansion of computer network systems and linked architectures, such as the Internet, have greatly increased the opportunity for carrying out transactions through networked computers. Unfortunately, the performance of transactions via networked computers requires the transmission of sensitive data (credit card numbers, PIN numbers, passwords, etc.) over the communications network interconnecting the computers. A communications network is for the most part a nonsecure transmission environment that is subject to access by unauthorized third parties. An unauthorized party is able to get a hold of sensitive information by unlawfully monitoring computer communications over the communications network. This of course can be greatly damaging to an individual or business. Also, transfer of data over a communications network does not provide an easy way to ensure a party is authorized to transmit or receive sensitive data.
One current method for providing secure transmission of sensitive data in a computer network environment relies on encryption of the data prior to transmission. Unfortunately, newly devised decryption methods and faster computer systems continually make it easier for unauthorized third parties to crack any encryption code, thus rendering sensitive data vulnerable to unauthorized attack. Once the sensitive data has been decrypted by an unauthorized individual, this party may now use this sensitive data without authorization to make purchases or carry out any number of unauthorized transactions. Since many current encryption methods have no mechanism for verifying the identity of the person submitting the sensitive information, the unauthorized individual may continue their unlawful activities for a substantial period of time.
Other current systems providing authentication require that additional hardware be purchased by the user and an authentication card. The user must insert the authentication card into an associated card reader to access sensitive data. If the card is illegally obtained by an unauthorized individual, this person may still access the sensitive data. Thus, a system enabling secure transmission of sensitive data and verification of a sender's identity would greatly benefit the expanded use of transactions occurring over networked computer systems.